The Danish Energy Agency has concluded the Power-to-X Tender and six projects will win the State Aid. Four different companies are behind the six winning projects and can now start building up the production of green hydrogen in Denmark.

The Danish Energy Agency can now reveal the winners of the first Danish Power-to-X (PtX) tender ever. PtX is an essential technology in the green transition of Denmark in order to meet climate neutrality by 2050. Green hydrogen produced by PtX enables renewable solutions also in hard-to-abate sectors where electrification is difficult, eg. heavy transport, shipping and aviation.

In April 2023 the PtX Tender was opened for bids and the market has shown a great interest for the Tender. The bidding companies has applied for more than four billion DKK, which is more than three times the budget of 1.25 billion DKK.

The winning projects are Plug Power Idomlund Denmark, European Energy/Vindtestcenter Måde K/S, European Energy/Padborg PtX ApS, Electrochaea/Biocat Roslev and European Energy/Kassø PtX Expansion ApS. Those five projects will receive the full budget they have applied for in the bidding process. The sixth winner HyProDenmark/Everfuel will be offered a reduced budget.

“The DEA highly appreciates the great interest for the Tender. This is the first time we get an indication of the need for support to green hydrogen, and it is a strong signal from the market that so many bids are below 70 DKK/GJ. It is good for the competition in the industry and for the green transition. This is an industry in the making and we are happy to be able to help the industry along with these funds,” Deputy Director Martin Hansen states.

Six different projects with different needs for support

The six winning projects have bid with different support needs and different electrolysis capacities. The lowest subsidy price is from the Plug Power Idomlund Denmark project with a price of 9,3 DKK pr. GJ green hydrogen produced. The support will be given as a fixed subsidy price over a period of 10 years.

The six project will establish a total electrolysis capacity of more than 280 MW. The table below summarizes the six winning projects.

With the announcement of the result of the PtX Tender there will now be declared a period of ten days stand still. After the stand still period the Danish Energy Agency and the winning projects will sign the contract under the condition that no complaints are received.

After the conclusion of the contracts, the winning projects have four years to build the electrolysis plants and start the production of green hydrogen. Most of the project however, expect to start the production sooner.

Facts

  • In April 2023 the Power-to-X Tender was opened for bids and closed by September 1, 2023.
  • The total budget of the PtX tender is 1,25 billion DKK.
  • The Energy Agency has received bids for more than four billion DKK corresponding to electrolysis capacity of more than 675 MW.
  • The Danish Energy Agency has found six winning projects planned by four different companies.

Source: Danish Energy Agency